Thesis Title:

Increasing The Capacity of the Cooperative

Development Authority for Sustainable Growth of
Cooperatives in The Philippines

Submitted to the Graduate Faculty of the:

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF NATIONAL DEFENSE
NATIONAL DEFENSE COLLEGE OF THE PHILIPPINES
Camp General Emilio Aguinaldo, Quezon City

In Partial Fulfillment of the Requirements for the Degree in

MASTER IN NATIONAL SECURITY ADMINISTRATION

By: RAY R. ELEVAZO, CSEE

Regular Class No. 53
 Some of the Concepts defined and discussed:

National Security - a state or condition wherein people’s

welfare, well-being, ways of life, government and its
institutions; territorial integrity; sovereignty; and core values
are enhanced and protected (NSP 2017-2022).
Security – the state of being safe and free from conflict,
poverty and inequity.
Cooperatives and National Security Concepts
The most likely resources of soft power are institutions,
values, culture and policies. In international politics, the
resources that produce soft power arise in large part from
the values an organization or country expresses in culture,
in the examples it sets by its internal practices and policies
and in the way it handles its relation with others. These
resources are sources of attractiveness.
The Philippines can promote its aspirations by having the
cooperative movement in the country as one of its attractive
tools.
For purposes of internal security, cooperatives are
institutions with both ideological and socio-economic
modalities that can provide better options for socio-
economic empowerment, growth and inclusion, asset
reform and poverty reduction.
Cooperatives: Contributors to the Peace Process and
National Security
Although many cooperatives were organized to fight
poverty and inequity in an atmosphere of relative peace,
there are cooperatives that were organized in the conflict
areas both to address the root causes of conflict as well as
serve as an alternative organization and provide an
alternative ideology for the people and deny the enemies of
the State a foothold in the hearts and minds of the people.
Cooperatives as Potential Soft Power Contributors
As the Philippine cooperative movement celebrated its
centennial last 2015, cooperative best practices and
culturally weaved viable ideological option can now serve
as one of the Philippines’ potential sources of soft power
that can influence other nations, primarily the ASEAN
countries, for mutual benefit and further cooperation.
The Cooperative Development Authority (CDA):
Designed to Work for the Sustainable Growth of
Cooperatives
The role of CDA in national development and security
hinges on its “hand-holding” of cooperatives which refers to
the implementation by the CDA of its mandate. This bring
to attention how functionally and technically capable the
CDA is in implementing its mandate for sustainable growth
of cooperatives.
 Statement of the Problem

The weakness brought about by the challenges that

negatively affect the implementation of its mandate for
sustainable growth of cooperatives lays the predicate for
looking into how the capacity of CDA would increase.
In this connection, the study aims to provide
answers to the following research questions:

1. What is the strategic role of the CDA in developing

cooperatives in the Philippines?

2. What are the challenges that call for the increase of the

capacity of CDA?

3. How will the capacity of the CDA increase?

4. How will the increased capacity of CDA contribute to

the sustainable growth of

cooperatives in the Philippines?

5. What is a best course of action to increase the capacity

of the CDA?
 Objectives

The study seeks to attain the following objectives:

a. To determine the strategic role of the CDA in

developing cooperatives in the Philippines;

b. To analyze the challenges that necessitate the

increase of the capacity of the CDA;

c. To analyze the manner by which the capacity of the

CDA will increase.

d. To determine the connection between the increased

capacity of the CDA and the sustainable growth of

cooperatives in the Philippines.

e. To propose a best course of action to increase the

capacity of the CDA.

Conceptual Framework
 Research Design

1. Qualitative research method

2. Positivist principles

Instruments and Methods of Research

Research instruments were utilized:

1. Questionnaires

2. Document analysis

3. Key informant interview (KII)

4. Focus group discussion (FGD).

 ABSTRACT
The CDA has a strategic role for sustainable growth of
cooperatives in the Philippines.
It is:
1. A Constitutionally mandated office.

2. The sole registering agency for cooperatives.

3. The lead government agency for cooperative

promotion, development and regulation.

4. Clothed with a Rule-Making Authority under the

leadership and governance of its Board of

Administrators.

5. Among the anti-poverty agencies of the government.

The CDA is however confronted with challenges that

call for the increase in its capacity to effect sustainable
growth of cooperatives that revolve around gaps and issues
relative to its functional capacity which affect its technical
service areas, particularly cooperative registration, legal
services, supervision and examination, research,
information and training, and project development
assistance, in terms of :
 1. policy and normative capacities,

2. knowledge capacities,

3. partnering capacities, and

4. implementing capacities

Identified Courses of Action/Proposals and

Recommendations to tackle the challenges and
increase the capacity of the CDA:

1. Non-legislative, and

2. Legislative

The implementation of a best course of action via

policy advocacy process is finally proposed for
sustainable growth of cooperatives, thus, contributing to the
economic and social-cultural dimensions of the country’s
National Security.
 EXCERPTS FROM THE POLICY BRIEF
dated August 21, 2018

Re: Appropriate Courses of Action to Increase the

Capacity of the Cooperative Development
Authority for Sustainable Growth of
Cooperatives
Executive Summary:
Analyzing the figures, considering the strategic role of
the CDA, it fell short in successfully shepherding 50% of
cooperatives, or a substantial portion of said number, in the
path of sustained growth.
An increase in the capacity of CDA should have
propelled it to accomplish more in hand-holding the
cooperatives in the Philippines far more than what they
have contributed today to the society and economy, in
terms of income, livelihood and employment generation
and investments as of December 31, 2017 xxx.

Approaches and Results:

1.The over-all current policy is good, but there is a pressing

need to review all constitutional provisions, laws, executive
orders, development plans and other related issuances to
find out why despite these, the CDA experience capacity
inadequacies and the compliance and functionality of
cooperatives remain to be at the 50% level.
2.The dysfunction within the policy radiated also to the
organizational and individual dimensions that it affected the
organizational and societal ends of the mandate of the CDA
which has important implications to its contribution to
National Security.

3. Majority of the challenges of the CDA were however

determined by external factors, or the enabling
environment, such as:
a. The official allocation of budget,
b. The policy determination of its core structure and
appointment of governing board, and
c. The implementation of the whole-of-government
principle by government agencies in
connection with CDA and cooperatives.

Implications and Recommendations:

At the first instance, the increase in the capacity of

the CDA for sustainable growth of cooperatives should be
well grounded in the intent of the provisions of the 1987
Philippine Constitution.
Secondly, membership compose only of 10.30% of
the population, and 20% of the registered voters. The task
of cooperative promotion and development is still
gargantuan.
In this connection, as the constitutional mandate
intends for the CDA to be invested with function and
responsibility of developing cooperatives as cooperatives,
i.e., institutional development of cooperatives. And the
rest of the government structure, national and local,
including government owned or controlled corporations
shall be vested with the function and responsibility of
developing the technologies needed by cooperatives in
their operations (e.g., technical and/or technological
software and hardware).
Recommendation for Implementation within the
Immediate One-Year:
1. Review the constitutional provisions, laws, executive
orders, other related policies and issuances. Identify the
weak and the strong policies, including the relevant and
irrelevant ones for the purpose of formulating relevant and
realistic policy directions.
2. Undertake organization development (OD)
assessment that would include its absorptive capacity,
limited resources, number and competency of staff,
knowledge management and organizational culture,
structure, and needs, among others, before considering
repeal of the Charter and reorganization. This should be
coupled with scenario planning to orient the officials and
personnel to realistically and strategically anticipate the
future of the agency and its environment.
Recommendation for Implementation Within One Year
and Beyond:
1. Utilize the Rule-Making Authority of CDA and regular
administrative processes to pursue the implementation
of plans and programs while breakthrough in legislative
changes has not yet come. Capacitate personnel to
improve competency in administrative, legal and
technical processes.

2. Improve and intensify public dissemination and

communication of CDA mandate, functions and
programs, and cooperative concepts and practices.

3. Improve the reliability of data and information system,

analytics, communication and research.

4. Continue to work for the increase in the budget and

personnel of the agency utilizing the regular
administrative process of the bureaucracy.

5. Optimize capacity of the CDA by stretching its limits and

maximize its effect in consonance with its mandate
through strategic partnership with NGAs, LGUs, NGOs
and Cooperatives by a more focused utilization of the
provisions of Executive Order No. 96, particularly the
mechanisms of the NCCPD and on CDCs to galvanize
support to CDA programs and activities, and Executive
Order No. 95.
6. Recognize and strengthen partnership with private
sector, academe and others that can extend help.

7. Focused and prudent mobilization of resources, and

developmental and regulatory efforts towards
institutional development, and safe and sound operation
of cooperatives along the continuum of assisting in the
growth of 6,571 micro cooperatives towards becoming
small-sized, 3,269 small cooperatives towards becoming
medium-sized, and 1,859 medium cooperatives towards
large-sized. And find ways to bring back the 4,468 non-
reporting cooperatives the mainstream reporting
cooperatives.

Recommendations for Implementation Within the

Immediate Three-Years Period:
Consider three (3) options factoring in the result of
Organizational Development Assessment and Scenario
Planning:

1. Amend some provisions of RA 6939 to put additional

necessary and relevant functions and provisions
without watering down all its existing functions and
without re-organization.

2. Repeal RA 6939, reorganize, reform and strengthen

the registration, developmental, regulatory and
 monitoring functions of and provide adjudication
powers for CDA. Retaining it under the Office of the
President.

3. Repeal RA 6939 and enact a new law that will

reorganize the CDA to a Line Department level, and
enhancing and broadening its developmental and
regulatory functions.
Immediate recommendation to tackle the issue of
federalism:

Organize a technical working group (TWG),

membership of which should come from the CDA and the
Cooperative Sector, for the purpose of: 1) studying the
implication of the provisions of the draft federal constitution
to the CDA and cooperatives; 2) Based on the study, draft
position papers for inclusion in the draft constitution, should
there still be opportunity for it; 3) actively monitor
developments and facilitate proper response.